Sunday, February 6, 2011

I just found a chart that shows how the price of college tuition has dramatically outpaced inflation, including health care costs. I think it provides a great visual of what happens when market forces (such as the ability to discharge loans in bankruptcy) are completely removed from higher education and when student loans are passed out like candy on Halloween. The chart seems to show a doubling of college tuition costs since 2000 whereas health care costs have only increased by about 53%. You can find it at the DShort blog.

Coincidentally, as tuition has skyrocketed, the value of a college education has plummeted. It's too bad we can't quantify and plot the decreasing value of a college degree and juxtapose it with a plot of the increasing tuition on the same chart. In the meantime our politicians and media pundits are still hawking higher education as a solution to our nation's economic problems and even people with Down Syndrome can go to college today.

6
comments:

Excellent graph. We live in a nation of bubbles. But Pussy Boy Obama wants everyone to get more education.

"Are you an unemployed, 60 year old contractor? Don't let anybody stand in your way! Get more education. Have you been unemployed for the past 24 months? Get more education, and make yourself more marketable. Did you stub your big toe on the edge of your bed this morning? Get more education."

We get it, Ass-Clown. We understand that you do not have an alternative to the abusive, reprehensible student loan scheme.

There's a scam and a bubble everywhere you turn. These scammers are so good at what they do and the American Public so damned stupid that the sheep are actually enlisted in bleating the message to indoctrinate the next generation of victims even without any personal gain to themselves.

It's truly amazing. It should be sickening, but I am a cynic so I don't care.

Americans are increasingly taking out student loans to compete for the diminishing number of good-paying jobs that remain.

Compare the inflation rates of industries where work is off-shored to low-wage labor markets (e.g. clothing) to industries subsidized by the government (e.g. college, health care, & housing). To reduce the inflation gap we must either bring back the high salaries of the low-cost industries or massively cut costs in the inflated industries. Which would you prefer?